google adsense check
Home STOCKS S&P International cuts Axis Bank’s score, affirms 7 bank’s scores

S&P International cuts Axis Bank’s score, affirms 7 bank’s scores

Mumbai: S&P World Ratings on Friday mentioned it has lowered its ratings on Axis Bank, reflecting the ratings agency’s view that financial threats have enhanced for banks functioning in India.
“We reduced our ratings on Axis to reflect our expectation that heightened economic hazards dealing with India’s banking method will have an affect on the bank’s asset high-quality and economic functionality,” S&P claimed in a launch.
“While Axis’ asset high quality is remarkable to the Indian banking sector normal, its degree of non-performing assets (NPAs) will likely continue to be high when compared to worldwide peers’. Yet, we count on the bank to keep its solid market position and suitable capitalization,” it additional.
It also positioned its ratings on Indian Bank on CreditWatch as it sees a high risk that the general public sector bank’s credit profile could weaken over the coming quarters owing to Covid-19, as effectively as the merger with the weaker Allahabad Bank.
At the exact time, S&P affirmed the rankings on the seven other banking institutions it rates in India.
“We consider risks stemming from difficult functioning conditions adhering to Covid-19 have enhanced for Indian banking companies. We now assume the Indian financial system to fall into a recession in the recent fiscal year,” S&P mentioned.
“We foresee Indian banks’ asset high-quality will deteriorate, credit expenditures will increase and profitability will decrease about the next 12 months,” the scores agency stated, including that it has revised its banking field state risk assessment (BICRA) for India to group ‘6 ‘from group ‘5’.
“We evaluate the economic risk trend as steady,” it additional.
S&P explained it affirmed the rankings on HDFC Bank to mirror the bank’s powerful organization franchise, low credit charges and superior funding and liquidity profile than industry friends.
The bank also affirmed the rankings of ICICI Bank, IDBI Bank, Kotak Mahindra Bank, Condition Bank of India, and Union Bank of India.


Please enter your comment!
Please enter your name here

Most Popular

Stock futures flat adhering to offer-off on Wall Street

U.S. stock futures were flat in overnight trading, next weak spot in equities in the prior session. Dow futures rose 40 details, indicating a attain...

Coronavirus strains Florida health and fitness technique as some hospitals run out of ICU beds in largest counties

People today hold out for wellness assessment check-in before coming into Jackson Memorial Medical center, as Miami-Dade County eases some of the lockdown actions...

Recent Comments